What are the steps I need to take to file for bankruptcy in New York?
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To file for bankruptcy in New York, an individual must follow the following steps:
Obtain Credit Counseling – Before filing for bankruptcy, the individual must complete a credit counseling course from an approved agency within the 180 days prior to filing. The course can be taken online, over the phone, or in person.
Complete Bankruptcy Forms – The individual must fill out the necessary bankruptcy forms, including the petition, schedules, statement of financial affairs, and other required documents. These forms are available on the website of the U.S. Bankruptcy Court or from an attorney.
File Forms and Pay Fee – The individual must file the completed bankruptcy forms with the U.S. Bankruptcy Court in the district where they reside. They must also pay the filing fee, which is currently $338 for Chapter 7 and $313 for Chapter 13. The fee can be paid in installments with the court’s permission.
Attend Creditors Meeting – Within 21 to 40 days after filing, the individual must attend a creditors meeting, also called a 341 meeting, where they will be questioned under oath by the bankruptcy trustee and any interested creditors. The trustee will determine whether the case is eligible for bankruptcy and whether any non-exempt property exists that can be sold to repay creditors.
Complete Mandatory Debtor Education – Within 60 days after the creditors meeting, the individual must complete a mandatory debtor education course from an approved agency. This course may be taken online, over the phone, or in person.
Receive Bankruptcy Discharge – If the trustee determines that the case is eligible for bankruptcy and all requirements are met, the individual will receive a bankruptcy discharge, which eliminates their debts and prevents creditors from collecting on debts discharged in bankruptcy.
It is important to note that filing for bankruptcy can have serious long-term consequences and should only be considered as a last resort. Additionally, certain types of debts, such as most taxes, child support, alimony, and student loans, may not be discharged in bankruptcy. It is recommended that individuals considering bankruptcy seek the advice of a licensed attorney to discuss their specific situation and explore all available options.
